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The foregoing is, at most, a brief and incomplete discussion
of a complex topic. Options trading has its own vocabulary
and its own arithmetic. If you wish to consider trading in
options on futures contracts, you should discuss the
possibility with your broker and read and thoroughly
understand the Options Disclosure Document which he is
required to provide. In addition, have your broker provide
you with educational and other literature prepared by the
exchanges on which options are traded. Or contact the
exchange directly. A number of excellent publications are
available. In no way, it should be emphasized, should
anything discussed herein be considered trading advice or
recommendations. That should be provided by your Orion
Futures Group, Inc. broker or advisor. Similarly, your
broker or advisor--as well as the exchanges where futures
contracts are traded--are your best sources for additional,
more detailed information about futures trading.
It is not our intention to suggest either that you
should or should not participate in futures markets.
Low margins, high leverage, frequently volatile
prices, and the continuing needs of hedgers to
manage the price uncertainties inherent in their
business create opportunities to realize potentially
substantial profits. But for each such opportunity,
there is a commensurate risk. Futures trading, as
stated at the outset, is not for everyone.
Hopefully, the preceding pages have helped to
provide a better understanding of the opportunities
and the risks alike, as well as an understanding of
what futures markets are, how they work, who uses
them, alternative methods of participation and the
vital economic function that futures markets
perform. Related Topics:
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